ExxonMobil not yet ready to resume Aceh operations

JAKARTA (Antara): ExxonMobil Oil Indonesia will need at least one month to resume its operations in Aceh in order to conduct technical tests in the field, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said here on Tuesday.

"To resume its operations, ExxonMobil would require a month (of preparation)," Purnomo said.

The American company had suspended its operations in Aceh since March 9 due to mounting threats made by the separatist Free Aceh Movement.

The move caused Indonesia financial losses estimated at some US$100 million a month for its failure to meet natural gas exports to Japan and South Korea.

Purnomo said the company will have to conduct field tests before restarting operations to ensure that all pipes are ready for operation.

The government, he said, had sent a team to help the company make preparations.

He, however, did not provide details on the preparations to be made.

On the scarcity of diesel fuel along the northern coast of West Java, Purnomo said state oil company Pertamina had been planning to assign additional supplies to meet the legitimate demands of fishermen in the area.

"Yesterday, I visited Surabaya (East Java) and Central Java. There is no scarcity of diesel fuel except along the northern coast. Pertamina had agreed to launch a market operation there," the minister added.

The highest demand for diesel fuel occurs in Jakarta, amounting to 5 million kiloliters a year, 40 percent of which is consumed by industrial users.

Many cities in the country have suffered a shortage of diesel oil following the government's recent decision to set a different price for industries.

Under the new price regulation, industries have to buy the diesel fuel at Rp 970 per liter, as compared to Rp 550 at a gas station. Many industries however bought the diesel oil from gas stations through "intermediaries" to take the advantage of the scheme.